Solar panels, also known as photovoltaic (PV) panels, are devices that convert sunlight into electricity. They are a key component of solar power systems, which are used to generate renewable energy for various applications, from residential homes to large-scale power plants. How Solar Panels Work Photovoltaic Effect: Solar panels operate on the principle of the photovoltaic effect, discovered by Edmond Becquerel in 1839. When sunlight hits the PV cells in the panel, it excites electrons in the semiconductor material, usually silicon, creating an electric current.